Government securities issuance and trading

Types of government securities

Hungarian Government Bond (MÁK)

The Hungarian Government Bond is an interest-bearing government security with a maturity longer than one year. Currently, it is issued with tenors of 3, 5, 10 and 15 years. The first auctions of the three-year and five-year fixed rate bonds were held on May 2, 1996 and January 30, 1997, respectively. The ten-year fixed rate bond was auctioned for the first time on January 14, 1999, while the first auction of the five-year floating rate bond was on March 19, 1998. The fifteen-year fixed rate bond was introduced on November 8, 2001. Switch auctions for Hungarian Government Bonds were introduced on November 2, 2009.

The coupon of a fixed rate government bond is fixed and announced in the respective public offering for all the subsequent interest periods. For a floating rate bond, however, only the method and date of coupon re-set are determined in advance and the coupon rate is announced only for the given interest period.

The coupon payment frequency of fixed rate Hungarian Government Bonds can be annual or semi-annual. Government bonds issued after January of 2002 pay interest annually.

Hungarian Government Bonds have been sold through auctions since 1996. The auctions are held on Thursdays of every second week. At each auction three types of fixed rate bonds are offered for sale - the 3-year fixed rate bond, the 5-year fixed rate bond and either the 10-year fixed rate bond or the 15-year fixed rate bond. Only Primary dealers may participate directly at the Hungarian Government Bonds auctions, investor should submit orders through the PDs.

The auctions of floating rate Hungarian Government Bonds are held on Thursdays of every second week. At each auction one or two series of floating rate bonds are offered for sale – either the 3-year floating rate bond and/or the 5-year floating rate bond.

The payment date and transfer of ownership is always on Wednesday on the week following the week of the respective auction.

The offered amount of the Hungarian Government Bonds at each auction are determined in line with the financing plan.

The minimum denomination of Hungarian Government Bonds is HUF 10,000. Since 12 April, 1999 Hungarian Government Bonds have been issued in dematerialised form. Hungarian Government Bonds are is listed on the Budapest Stock Exchange on the date of the settlement. Hungarian Government Bonds are listed also on the multilateral trading system called “MTS Hungary” operated by EuroMTS Limited on the day following the publication of Public Offering preceding the date of the first placement and listed on the regulated market called “Bond Vision Market” operated by MTS SpA on the day of the first placement.

Hungarian Government Bonds are available to resident and non-resident individuals, legal entities and non-incorporated economic associations. These investors may trade government securities without limitations during the whole maturity period. Non-residents may buy and sell government securities throughout the whole maturity period under the terms and conditions specified in the relevant Hungarian legislation without any restrictions.

Premium Hungarian Government Bond (PMÁK)

The Premium Hungarian Government Bond is a registered floating rate government security with tenors of three and five years. The denomination is HUF 1,000. The annual interest rate is calculated as a sum of a variable interest base and the interest rate premium. The interest base for the given interest period equals to the previous year’s Hungarian “Harmonised Consumer Price Index” published by KSH (Hungarian Central Statistical Office) with the provision that if this value is negative, the base rate shall be zero percent. The fixed interest rate premium, which is different for each series, currently is 2.75% for the 3 year and 3.25% for the 5 year tenor.

The interest period is one year and interest amount is paid .on the last day of each such period. The date of interest rate fixings and the interest rate premium are set in the public offering.

The Premium Hungarian Government Bond that is sold within a time frame designated by the issuer and all the securities of the same series have the same maturity. The repayment of the principal is due in one lump sum at maturity.

The Premium Hungarian Government Bond can be purchased and transferred by resident and non-resident individuals, resident legal persons and organizations without legal personality. Business associations not qualified as “nonprofit” and institutional investors (as described in point 60 of Section 5 of Act No. CXX of 2001 on the Capital Market) are excluded. Non-residents may acquire and transfer this security in accordance with the effective foreign exchange laws.

The security can be bought and sold in the branch network of the Hungarian State Treasury, through its electronic platform called WebTreasury, and from June 2, 2014 in the branch network of the following dealers: CIB Bank Zrt., Concorde Értékpapír Zrt., Erste Befektetési Zrt., NHB Növekedési Hitel Bank Zrt., FHB Bank Zrt, MKB Bank Zrt., OTP Bank Nyrt., UniCredit Bank Hungary Zrt., Raiffeisen Bank Zrt., and Takarékbank Zrt.

Bonus Hungarian Government Bond (BMÁK)

The Bonus Hungarian Government Bond is a registered floating rate government security with tenors of four, six and ten years. The denomination is HUF 1. The annual interest rate is equal to the sum of the interest base and the interest rate premium. The interest period is one year and interest amount is paid on the last day of each such period. The interest rate premium is different for each series, currently it is 2.00%, 2.50% and 2.75% for the 4, 6 and 10 year tenors respectively.

The interest base for the given interest period equals to the weighted average of the yields of the previous four successful auctions of the 12 month Discount Treasury Bills. The date of interest rate fixings and the interest rate premium are set in the public offering.

The Bonus Hungarian Government Bond is sold within a time frame designated by the issuer and all the security has the same maturity. The repayment of the principal is due in one lump sum at maturity.

The Bonus Hungarian Government Bond can be purchased and transferred by resident and non-resident individuals, resident legal persons and organizations without legal personality. Business associations not qualified as “nonprofit” and institutional investors (as described in point 60 of Section 5 of Act No. CXX of 2001 on the Capital Market) are excluded. Non-residents may acquire and transfer this security in accordance with the effective foreign exchange laws.

Series with the tenor of ten years can be bought and sold in the branch network of the Hungarian State Treasury, through its electronic platform called WebTreasury, and in the branch network of the following dealers: CIB Bank Zrt., Concorde Értékpapír Zrt., Erste Befektetési Zrt., NHB Növekedési Hitel Bank Zrt., Gránit Bank Zrt., Magyar Takarékszövetkezeti Bank Zrt., MKB Bank Zrt., OTP Bank Nyrt. and Unicredit Bank Hungary Zrt.

Series with tenors of four and six years can be bought and sold at institutions listed above and additionally in the branch network of the following dealers: FHB Bank Zrt. and Raiffeisen Bank Zrt.

Premium Euro Hungarian Government Bond (P€MÁK)

The Premium Euro Hungarian Government Bond is a registered floating rate government security with a tenor of three years. The denomination is 1 Euro. The interest rate is calculated as a sum of a variable interest base and a fixed interest rate premium.

The interest base is equal to the change of the final “Harmonised Index of Consumer Prices - all items excluding tobacco” (in percentage), officially published as latest data by the European Commission (Eurostat) for the Participating Member States prior to the given date of interest rate fixing, for the period between the third month preceding the date of interest rate fixing and the same month of the preceding year, with the provision that if this value is negative, the interest base shall be equal to 0%, i.e. zero percent. The fixed interest rate premium, which is different for each series, currently is 2%.

The interest rate is determined twice every year and the interest amount is paid on the last day of the 6 month interest periods. The date of interest rate fixings and the interest rate premium are set in the public offering.

The Premium Euro Hungarian Government Bond is sold within a time frame designated by the issuer and all the securities of the given series have the same maturity. The repayment of the principal is due in one lump sum at maturity.

The Premium Euro Hungarian Government Bond can be purchased and transferred by resident and non-resident individuals, resident legal persons and organizations without legal personality. Business associations not qualified as “nonprofit” and institutional investors (as described in point 60 of Section 5 of Act No. CXX of 2001 on the Capital Market) are excluded. Non-resident individuals may acquire and transfer this security in accordance with the effective foreign exchange laws.

The security can be bought in the branch network of the Hungarian State Treasury and through its electronic platform called WebTreasury.

Discount Treasury Bill (DKJ)

Discount Treasury Bills are government securities with a maturity less than one year. No interest is paid on these securities; instead, they are issued at a discount, i.e. at a price lower than the face value of the security, and the face value is repaid on the redemption date. The difference between the face value and the purchase price is the discount.

Currently Discount Treasury Bills are issued for two tenors, namely 3 and 12 months, but due to the active secondary market of these securities they are available on the secondary market for practically any possible residual maturity until one year.

Since the end of 1988 Discount Treasury Bills have been issued at auctions. At present, auctions of 3-month Discount Treasury Bills are held on Tuesdays every week and 12-month bills on Thursdays of every second week. Only Primary dealers may participate directly at the Hungarian Government Bonds auctions, investor should submit orders through the PDs.

The payment date and transfer of ownership is always on Wednesday on the week following the week of the respective auction. The redemption dates of T-bills also fall on Wednesdays.

The offered amount of Discount Treasury Bills at each auction is determined in line with the financing plan.

The minimum denomination of Discount Treasury Bills is HUF 10,000. Since 12 April, 1999 Discount Treasury Bills have been issued in dematerialised form.

The 12-month Discount Treasury Bills are listed on the Budapest Stock Exchange on the date of the settlement, as well as on the multilateral trading system called “MTS Hungary” operated by EuroMTS Limited on the day of the auction and on the regulated market called “Bond Vision Market” operated by MTS SpA on the day of the first auction.

Discount Treasury Bills are available to resident and non-resident individuals, legal entities, and non-incorporated economic associations. These investors may trade Discount Treasury Bills without limitations through the whole maturity period. Non-residents may buy and sell government securities throughout the whole maturity period under the terms and conditions specified in the relevant Hungarian legislation without any restrictions.

1-year Interest-Bearing Treasury Bills (KKJ)

1-year Interest Bearing Treasury Bills are fixed rate government securities in a dematerialised form with a tenor of one year. The minimum denomination of this instrument is HUF 10,000. Interest is paid at maturity, when investors receive the amount of interest together with the principal.

1-year Interest Bearing Treasury Bills were issued for the first time in 1988. These securities are offered for sale continuously during a successive one-week subscription period, so the capital and the interest can be easily reinvested at redemption. Currently Interest Bearing Treasury Bills are available at a price below par at the beginning of the subscription period and at par at the end of the period.

The 1-year Interest Bearing Treasury Bills can be purchased and transferred by resident and non-resident individuals, resident legal persons and organizations without legal personality. Business associations not qualified as “nonprofit” and institutional investors (as described in point 60 of Section 5 of Act No. CXX of 2001 on the Capital Market) are excluded. Non-residents may acquire and transfer this security in accordance with the effective foreign exchange laws.

The 1-year Interest Bearing Treasury Bills can be bought and sold in the branch network of the Hungarian State Treasury, through its electronic platform called WebTreasury, and in the branch network of the following dealers: CIB Bank Zrt., Erste Befektetési Zrt., K&H Bank Zrt., MKB Bank Zrt., OTP Bank Nyrt., UniCredit Bank Hungary Zrt., Raiffeisen Bank Zrt., and Takarékbank Zrt.

Half-year Interest-Bearing Treasury Bills (FKJ)

Half-year Interest Bearing Treasury Bills are fixed rate government securities in a dematerialised form with a tenor of 6 months. The minimum denomination of this instrument is HUF 10,000. Interest is paid at maturity, when investors receive the amount of interest together with the principal.

The Half-year Interest Bearing Treasury Bills were issued for the first time in 2012. These securities are offered for sale continuously during a successive one-week subscription period, so the capital and the interest can be easily reinvested at redemption. Currently Half-year Interest Bearing Treasury Bills are available at a price below par at the beginning of the subscription period and at par at the end of the period.

The Half-year Interest Bearing Treasury Bills can be purchased and transferred only by resident and non-resident individuals, resident legal persons and organizations without legal personality. Business associations not qualified as “nonprofit” and institutional investors (as described in point 60 of Section 5 of Act No. CXX of 2001 on the Capital Market) are excluded. Non-residents may acquire and transfer this security in accordance with the effective foreign exchange laws.

The Half-year Interest Bearing Treasury Bills can be bought and sold in the branch network of the Hungarian State Treasury, through its electronic platform called WebTreasury, and in the branch network of the following dealers: CIB Bank Zrt.,Erste Befektetési Zrt, K&H Bank Zrt., MKB Bank Zrt., OTP Bank Nyrt., UniCredit Bank Hungary Zrt., Raiffeisen Bank Zrt., and Takarékbank Zrt.

​Treasury Savings Bills (KTJ)

Treasury Savings Bills are fixed, step-up rate securities available with tenors of one year and two years The Treasury Savings Bill I. is a T-bill, while the Treasury Savings Bill II. is a government bond.

They exist in physical (printed) form only, with denominations of HUF 10,000; 50,000; 100,000; 500,000 and 1 million. Treasury Savings Bills were issued for the first time on April 1, 1995.

Treasury Savings Bills may be redeemed at any time up to the maturity date. Upon early redemption, the proportional part of the interest for whole months is paid together with the principal. The fixed rate specified for the different holding periods is shown in advance in an announcement effective on the date of purchase.

Interest on these securities starts accruing on the day of their purchase and does not accrue after the redemption date. Upon redemption, the holder of the securities receives a fixed amount of interest based on the time elapsed since the day of purchase. No interest is paid if the security is redeemed within 3 months, but after 3 months the annual interest rate steps up monthly up to and including the 12th month (but for the Treasury Savings Bill II. only on two occasions in the 13th and 19th months in the second year), reaching its maximum level at the end of the maturity period. The interest rate of the last whole month is applied to the entire tenor up to the redemption date.

Treasury Savings Bills are registered securities, which can be bought and transferred only by resident individuals.

Treasury Savings Bills are issued through continuous sales through approximately 2700 designated post offices of the Hungarian Postal Service.

Public Offerings, Announcements and information leaflets providing detailed information on Treasury Savings Bills are available to investors at the designated post offices.

Treasury Savings Bills Plus (KTJP)

Treasury Savings Bills Plus are fixed, step-up rate securities in a dematerialised form with a tenor of one year. The minimum denomination of this instrument is HUF 1. Interest is paid at maturity, when investors receive the amount of interest together with the principal.

The sales period is one week. During the sales period the issue price is the nominal value on the issue date, after that the sum of the nominal value and the accrued interest.

Treasury Savings Bills Plus may be redeemed at any time up to the maturity date. Upon early redemption the holder of the securities receives a fixed amount of interest based on the time elapsed since the issue date. No interest is paid if the security is redeemed within 3 months, but after 3 months the annual interest rate steps up daily reaching its maximum level at the end of the maturity period.

Treasury Savings Bills Plus can be purchased and transferred only by resident individuals.

Treasury Savings Bills Plus were issued for the first time in 2013. Treasury Savings Bills Plus can be bought and sold at approximately 350 designated post offices of the Hungarian Postal Service.

Information about "Residency Bond"

Information about Section 28 (3)-(7) of the amendments to Act No. 2 of 2007 on the Admission and Right of Residence of Third-Country Nationals (the “Act”)

Information for applicants for residence permits in Hungary

The so-called “Residency Government Bonds” are zero-coupon government securities issued after January 1, 2015 with denominations of EUR 50.000 for a tenor of minimum 5 years in accordance with the separate Decree of the Minister for National Economy. The Residency Government Bonds are issued at a discounted price and will be redeemed at par value at maturity. The yield of the Residency Government Bond is calculated in accordance with respective rules of law as a difference between the par value and the discounted price.

The Residency Government Bonds can be subscribed by such companies that invest exclusively into Residency Government Bonds and have signed an agreement with the Government Debt Management Agency private Company Limited by Shares (“ÁKK Zrt.”) for such activity.

In accordance with Section 110.§ (11) of the Act in connection with applications submitted after January 1, 2015 an aggregate par value of 300,000 euro of Hungarian Residency Government Bonds shall be subscribed (bought) per applicant.

The company as specified above issues a security with at least five years of tenor of which (and not of the Residency Government Bonds) the applicant for a permission of residence in Hungary should hold not less than EUR 300.000 of face value for minimum 5 years. The specific terms of these securities (especially the interest rate or yield) are not specified by the laws of Hungary. The company should have all licences required to carry out such activities in the relevant country.

The approval for the company is granted by the Economic Committee of the Hungarian Parliament. Having received such necessary approval of the committee, the company should sign an agreement with AKK Zrt. for the issuance of the Residency Government Bonds (issuance by the State and purchase by the Company). The list of approved companies is published on the website of ÁKK Zrt. (the list can be downloaded here)

With questions related to residence permits applicants should contact the Office of Immigration and Nationality of Hungary (by phone: +361 4639100, by e-mail: migracio@bah.b-m.hu, or by mail: Customer Service Office No.2, H-1117 Budapest, Budafoki út 60. / Sztregova köz).

Information for potential immigration service provider companies

In conformity with the Act the so-called “Residency Government Bonds” can be purchased exclusively by companies, which in turn will issue securities accordingly for the prospective applicants. Only one such company per a third country will be approved by the Economic Committee of the Hungarian Parliament. In order to apply for permission please contact the Committee directly. The contact details are the following: by phone: +361 4414567, by fax: +361 4414560, or by e-mail: gb@parlament.hu.


List of approved enterprises

Date of Contract
List of approved enterprises

The number of resolution of the Economic and Information Technology Committee of the Hungarian Parliament

09.04.2013.Hungary State Special Debt Fund (89 Nexus Way, Camana Bay, Grand Cayman KY1-9007)5/2010-2014. sz. bizottsági határozat
8/2010-2014. sz. bizottsági határozat

22 /2010-2014. sz. bizottsági határozat
27.05.2013.Discus Holdings Ltd (158, Merchants Street, Valetta, VLT1176, Málta; korábbi székhelye:236, St. Paul Street, Valletta, VLT1215, Málta)

9/2010-2014. sz. bizottsági határozat
13/2010-2014. sz. bizottsági határozat
20/2010-2014. sz. bizottsági határozat

The Framework Contract was terminated based on the resolution of the Committee no. 13/2014-2018 dated 15th December 2015.

20.06.2013.Innozone Holdings Limited (195 Arch. Makariou III Avenue, Cy-3030 Limassol, Cyprus)10/2010-2014. sz. bizottsági határozat
14/2010-2014. sz. bizottsági határozat
29.08.2013.Arton Capital Hungary Pénzügyi Tanácsadó Kft. (1061 Budapest, Székely Mihály utca 8.)

11/2010-2014. sz. bizottsági határozat
19/2010-2014. sz. bizottsági határozat
2/2014-2018. sz. bizottsági határozat

20/2014-2018. sz. bizottsági határozat

23.08.2013.VolDan Investments Limited (Schaan)

15/2010-2014. sz. bizottsági határozat

21/2014-2018. sz. bizottsági határozat

22.08.2013.EURO-ASIA Investment Management Pte Ltd (28C Stanley Street Singapore)

17/2010-2014. sz. bizottsági határozat

The Framework Contract was terminated based on the resolution of the Committee no. 14/2014-2018 dated 15th December 2015.

25.07.2013.S&Z program Limited (Schaan)16/2010-2014. sz. bizottsági határozat

The Framework Contract was terminated based on the resolution of the Committee no. 1/2014-2018 dated 25th September 2014.
21.03.2016.MIGRAT IMMIGRATION ASIA Ltd. (Chalkidonos 10, 3070 Limassol, Ciprus)19/2014-2018. sz. bizottsági határozat

Prospectuses, Rules of Procedure

PUBLIC OFFERING

Public Offering on the issuance of the Hungarian Government Bonds (KTV)

Title Format Size
2019_C (26 May 2016) pdf 125.81KB
2021_B (26 May 2016) pdf 126.13KB
2027_A (26 May 2016) pdf 127.46KB

Public Offering on the issuance of the Discount Treasury Bills (DKJ)

Public Offering on the issuance of the Hungarian Government Bonds (KTV) through exchange auction
  • pdf

Invitation to offer as to the secondary market repurchase of Hungarian Government Bonds before maturity

Title Format Size
hird17b_17a_0520EN pdf 202.31KB
hird17b_17a_0506EN pdf 202.14KB
OFFERING CIRCULAR

Offering Circular on the public issuance of Hungarian Government Bonds
  • pdf

Offering Circular on the public issuance of Discount Treasury Bills
  • pdf

Official calculation method
  • pdf

Government bond indices description

Title Format Size
MAX Index pdf 60.17KB
RMAX Index pdf 61.18KB
MAX Composite pdf 71.72KB
BMX Indices pdf 119.04KB
ZMAX Index pdf 62.99KB

Rules of procedure for repo transactions

Rules of procedure for the non-competitive tender of Hungarian Government Bonds
  • pdf

Rules of procedure for the price discovery executed prior to the switch auctions
  • pdf

Rules of procedure for calculating benchmark yields in the Hungarian government securities market
  • pdf

Rules of procedure for the secondary market buyback of Hungarian Government Bonds
  • pdf

Primary Dealers

Conditions of application
  • pdf

List of Primary Dealers
  • xls

Market makers in government securities
  • xls

The ranks of the primary market share of Primary Dealers in the last half-year

Please find below the ranks of the primary market share of Primary Dealers on the Government Bonds and T-Bills in the second half-year of 2015

Hungarian Government Bonds

  1. OTP Bank Nyrt.
  2. ING Bank N.V.
  3. Citibank Europe Plc.
  4. UniCredit Bank Hungary Zrt.
  5. MKB Bank Zrt.

Treasury Bills

  1. ING Bank N.V.
  2. K&H Bank Zrt.
  3. CIB Bank Zrt.
  4. Raiffeisen Bank Zrt.
  5. UniCredit Bank Hungary Zrt.

Retail Sale

Hungarian State Treasury

Hungarian Postal Service

The Treasury Savings Bills are available through approximately 2700 designated post offices of the Hungarian Postal Service. Please find the nearest post office to you.

For more information please call the 06 40 46 46 46 phone numbers.

The dematerialised Treasury Savings Bills Plus are available through approximately 350 designated post offices of the Hungarian Postal Service. Please find the nearest post office to you

Contents

Favorites

    HGB and T-bill calculator
    Date: settlement date; minimum value: 01-01-2003; the date on which securities must be delivered and paid for to complete a transaction
    Type: DKJ - discount treasury bills, KTV - treasury bonds
    Convention: calculation method: ISMA (Act/Act) or EHM (Act/365 No Leap)
    Security: T-Bond or T-Bill denominated in HUF
    Yield %: yield to maturity, the percentage rate of return paid if the security is held to its maturity date
    Clean Price %: net present value of selected security, if it is not the input field, then = gross price% - acc. interest%
    Acc. Interest %: the amount of interest accumulated but not paid between the issue date or most recent payment and the settlement date
    Gross Price %: present value of selected security, if it is not the input field, then = clean price% + acc. interest%
    Face Value: optional positive integer value, Net Price, Acc. Ineterst and Gross Price will be recalculated
    Net Price: Clean Price% * face value
    Acc. Interest: Acc. Interest% * face value
    Gross Price: Gross Price% * face value